Former motel complex could go higher with development
An aerial view of 31 unit former motel complex for sale at 252 Great North Rd, Henderson – identified by a red border.
A 31 unit former motel complex in Henderson now leased up as short term residential tenancies presents an excellent development opportunity with good cash flowholding income while a new owner considers future options.
“This is an offering that will appeal to developers, land bankers and property investors,” says John Stringer of Barfoot & Thompson Commercial who, with colleague Eddie Zhao, is marketing 252 Great North Rd for sale by tender closing at 4 pm on Thursday March 10 at the agency’s 50 Kitchener St office in Auckland Central.
The complex with a total building area of 1801 sq m, occupies a freehold land area of 3562 sq m. A 1210 sq m accommodation block contains 24 studio units, one one-bedroom unit, and five two-bedroom units. Other parts of the complex encompass a four bedroom house of 162 sq m, balconies and walkways of 360 sq m, a car port of 50 sq m and a spa building of 19 sq m.
“This property is successfully being run under management and is earning about $417,000 per year net,” Stringer says.
“It operated as a motel business until the middle of last year and was rapidly 100 per cent leased up on a short term individual residential tenancy basis. The landlord can terminate these tenancies by giving not less than 42 days’ notice while the tenants may terminate by giving 21 days’ notice.”
Ground level view of a section of the 31 unit former motel complex.
Car parking is provided between the motel and road frontage and at the rear of the buildings for around 50 cars.
Stringer says a feature of the property is its potential zoning under the Proposed Auckland Unitary Plan (PAUP) which allows for redevelopment.
“Under the Auckland Council District Plan - Waitakere Section 2003 – it is zoned Living Environment and holds consent for a motel and function centre. The building is currently two storeys in height, however under the PAUP it is designated in a Residential - Terrace House and Apartment Buildings zoning with residential buildings up to four storeys permitted.”
Zhao says the 31 unit complex has an initial valuation procedure (IEP) rating of 85 per cent and has been classified as A-grade for seismic rating purposes.
He says the site is largely rectangular in shape narrowing towards the front of the entrance to Great North Rd.
“There is a right of way and pedestrian access over the property providing access to the rear
site which previously formed part of the original property. The land has a moderate slope from the front to the rear of the site with good elevated views towards the Waitakere ranges in the west.”
John Stringer, Barfoot & Thompson Commercial.